An Industry-Wide Heat Check
As we head into the last few months of the year with an eye towards 2025, I want to call your attention to the US Remodeler Index (USRI) from Q3 2024. Conducted by Qualified Remodeler and John Burns Research and Consulting, this report is an excellent barometer of the industry’s outlook.
Of course, our businesses are all in different stages, but it provides an overview based on data from dozens of our peers nationwide.
The USRI scores each quarter based on responses from remodelers, design-build companies, and home improvement contractors. It’s essential to consider the companies surveyed and their respective sizes, markets, and revenue. Over half of all those surveyed primarily work with single-family residential projects and have between two and nineteen employees.
Before we dive into the details, the high-level summary is that remodeling has remained consistent since Q2, but demand has decreased significantly in the last few years. (Here’s a link to a shortened version of the entire report.)
And, at least in this most recent report, they present data for each quarter since the end of 2020. As we all know, the industry and economy have experienced significant change in the last four years as we experience a post-COVID world.
If you look at the USRI at the same time last year, you see a similar state across all three metrics: Near-Term Remodeling Activity, Remodeling Demand, and Current Remodeling Activity. The biggest difference is a near-ten-point spread in Near-Term Remodeling Activity.
The data also varies heavily depending on the region. Texas and the Midwest have a nine percent difference in project completion growth. Texas is a standout nationwide, with project completion growth down 6 percent year over year.
Additionally, project inquiries were down across all three company types. The report consistently emphasizes customer caution. In fact, consumer uncertainty is the primary factor holding back further growth, with nearly a quarter of the votes.
All this isn’t to say that the market is shaky; demand and activity are stable without much growth. The final verdict is an overall 57/100, barely above average.
We’ll have to see what 2025 brings, with the presidential election settled and the economy continuing to fluctuate, who knows where we’ll end up.
Regardless of the outcome, our best bet is to be adaptable and reach the market where it is. Metal roofing has continued to grow, and providing high-quality installation and customer service is always trending.
Todd Miller has spent his entire career in the metal building products manufacturing industry. He is president of Isaiah Industries, an organization recognized as one of the world’s leading metal roofing manufacturers. Todd is currently Vice President of the MRA (Metal Roofing Association) and a Past Chair of MCA (Metal Construction Association). Through his website, he strives to raise the bar on standards and practices to provide property owners with the best possible products for successful roofing projects.
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